Monterey says new manager's deal saves city $47,000

Monterey >> A three-year contract with new Monterey City Manager Mike McCarthy will save the city about $47,000 a year, city officials say.

The Monterey City Council is expected to easily approve the contract Tuesday — the item is on the council's consent agenda for routine or non-controversial items.

The council also will discuss changing the city's policy for naming public properties, including whether to allow business sponsorships to have "naming rights" in exchange for money to the city.

The council chose McCarthy, who previously worked as assistant city manager, to replace former manager Fred Meurer after a year-long process involving two recruitments failed to produce a job candidate the council could agree upon.

McCarthy's hiring was announced April 15, but the contract before the council Tuesday would run until May 5, 2017. It gives him a $230,000 annual salary, considerably more than Meurer's final base salary of $206,000.

But McCarthy's total compensation package amounts to $291,031 a year, about $47,000 less the Meurer's total compensation after his long city career, City Attorney Christine Davi says in a council report.

Other benefits under McCarthy's contract include a city-provided Toyota Camry Hybrid or similar vehicle for business use and "incidental private use," a $780 annual cell-phone allowance, health and retirement benefits, and 40 hours of management leave a year.

He could be fired without cause with four of the five council members voting, or for cause with three council votes. He would be eligible for up to six months severance pay.

On the city's naming policy, the council will consider a recommendation to expand the policy to include paid sponsorships on a pilot program basis.

Monterey's naming policy now covers parks and recreational facilities, but the recommendation is to include more properties and even individual rooms within buildings.

A survey of other cities showed that giving naming rights to businesses is a fairly common practice. The council report suggests several guidelines if the council wants to go that direction. They include:

• Requiring the word "Monterey" in any sponsored facility, such as the "Nike Sports Center at Monterey."

•The funding sources — individual or businesses — must promote public health and well-being and be non-discriminatory,

•Contributions should be used on the building or facility for which they are donated.